GST

GST is a new form of tax that seeks to replace all central and state taxes and levies such as excise duty, countervailing duty, service tax, value added tax, octroi, entry tax and luxury tax. Goods and services should be taxed based on the value addition at each stage and not based on the gross value of the goods or services billed at each stage. Further, tax should be eventually borne at the point of consumption rather than at the point of production, though the tax department must be able to track value addition at each step and collect tax proportionate to the value added at each stage.

GST is a single tax right from the manufacturer or service provider to the consumer. In this system, taxes paid at each stage will be credited in the subsequent stage of value addition. Thus, Goods and Services Tax charged by the final dealer (seller or service provider) is the final tax borne by the customer, with set off of all taxes paid at all earlier stages in the supply chain.

• It will be levied on all goods and services produced or supplied or imported in India.
• Exports are not subjected to Goods and Services Tax.
• Goods that are kept outside its purview include alcohol for human consumption, petroleum products such as crude oil, petrol, motor spirit, high speed diesel, natural gas, turbine fuel and electricity.

For Manufacturers and Traders

• Easy compliance
• Uniformity in tax rates and structure
• Removal of cascading or compounding effect of tax
• Enhance the competitiveness
• Move towards development of a common national market

For Central and State government

• Simple and easy administration
• Improved compliance and revenue collections
• Better revenue effectiveness

For Consumers

• Payment of the single and transparent tax
• Reduction of burden of the taxpayers

• Before GST in India, the Taxation system was divided into direct and indirect taxes. The direct tax included Income and Wealth Tax, and the Indirect tax included Sales Tax, Excise Duty, Customs Duty, and Service Tax.
• The indirect tax was imposed on one person; the burden of it, however, was imposed on another person. In the direct tax, the burden was imposed on the taxpayer directly.
• The tax was collected by the State and the Center separately, also, different states had different tax regimes.

The Goods and Services Tax or GST brought a major change in the taxation visuals in India. Earlier, different taxes were paid separately to the state and the center. However, GSTin subsumed all taxes into one, and now there is the practical application of ‘One nation, one tax.’ Some of the changes that GST brought in are as follows:

• No multiple taxes to be paid
• Replacement of indirect taxes like excise duty and sales tax into one
• Clear distinction of taxes on luxuries and necessities
• Introduction of simplified ways to fill Income Tax Returns and taxes, for instance through GST online portal or website
• Boost for Real estate and MSME sector
• Ease for transportation of goods, as no separate taxes
• Tax administration under both State and Central governments
• Transparency in the taxation process

• FM proposes a rise in capital expenditure by 34.5%
  Finance Minister Nirmala Sitaraman proposes a capital expenditure for Rs 5.54 trillion in the financial year 2021-2022. Last year the capital expenditure was estimated at Rs 4.12 trillion.

✅What do you mean by GST?

GST or Goods and Services Tax is an indirect tax, charged on the consumption and supply of goods and services in India. The Government collects GST from the ultimate point of consumption.

✅What is GST and types of GST?

GST is the Goods and Services Tax that is collected by the Government on various goods and services. It is distinguished into four types, which are IGST, CGST, SGST, and UGST.

✅What are the three types of GST?

The three types of GST are CGST or Central Goods and Services Tax, SGST or State Goods and Services Tax, IGST or Integrated Goods Services Tax, and UGST or Union Goods and Services Tax.

✅Who collects IGST?

IGST or Integrated Goods and Services Tax is collected by both Central and the State Government as per the prefixed revenues. This GST bill is collected in case of inter-state transactions.

✅Can I pay the GST bill online?

Yes, you can pay the GST bill online through GST official website.